A survey to estimate the market potential of all American (sausage) hot dogs

Maulik 11368

ACKNOWLEDGEMENT
First we would like to thank all our respondents for taking out time from their hectic schedules
for filling up our questionnaire, which proved to be the most valuable input to our research. We
would like to give my sincere gratitude to all of them without whom this research would have been
incomplete.
We would like to take this opportunity to express our profound gratitude and deep regard to our
guide Mr. Dipak Hadiya for their exemplary guidance throughout this project. Their valuable
suggestions were of immense help throughout this project.
Above all, utmost appreciation the almighty and our parents for their divine intervention in this
academic endeavor.

EXECUTIVE SUMMARY
Hot dog is adapted as fast food in India alongside burgers and Pizzas. Hot dogs are generally not
in the priority list of Indians as compared to burgers or pizzas. However the hot dog industry seen a
significant growth, thanks to changing lifestyles of Indian youth. Hot dog stalls can be found in
malls and busy shopping streets throughout the country.
Still, the basic way of eating hot dogs i.e. with a sausage as a primary ingredient is yet to make a
significance in Indian fast food scenario. Most of the hot dogs are found to be selling only Indian
flavoured aloo tikki/cutlet based hot dogs. The basic reason can be attributed to a belief that
sausages are being made of either beef or pork. Both of which are being prohibited in Indian
households. However, sausage based hot dog industry is a slow but steady pace in Indian metros.
Ahmedabad, Gujarats largest city and one of the largest metros of India, is no isolated to
western cuisines. Amdavadis, as the people of Ahmedabad are known have a peculiar taste in food.
The survey is intended to measure the market potential of sausage based hot dogs in Ahmedabad
region.

BACKGROUND

Hotdogs (or frankfurters) are a common fast food in west. In India it is on par with burgers and
pizzas. However it is not in their priority list. An average American eats around 60-80 hotdogs a
year, while it is not even a fraction in India. Still the hot dog industry has a significant growth in
past decade.
The most common form of hot dogs in India is traditional aloo tikki/cutlet based hot dogs. Hot
dogs can now be found on most of the fast food outlets, shopping malls, as a street food in almost
all metros and tier two cities as well as in small towns.
However the basic form of hot dogs i.e. sausage based hot dogs is yet to make a significance in
Indian fast food industry. Its only in metros and famous tourist destinations such as Kerala and
Goa.
The basic reason behind this can be attributed to the mentality that sausages are generally made
of beef or pork, both of which are prohibited in most of Indian households due to religious beliefs.
However sausages made of chicken or mutton and vegetarian sausages made of corn or soy are
launched by various retailers in order to woo Indian audiences.
Sausage based hot dogs were first started in India by Gurgaon based Simonja foods under the
brand name Hog dog. Hog dog now has around 100 outlets throughout India. Following the
footsteps of Simonja foods, many chains have come up selling sausage based hot dogs in India
including famous North-Indian chain Nirulas.
In Ahmedabad, the sausage based hot dogs were first started in the canteen of famous multiplex,
Cinepolis, Alpha one Vastrapur. Today many fine dining restaurants throughout the city have
included sausage based hot dogs in their menu. However, compared to other metros like Delhi or
Mumbai, the trend of sausage based hot dogs is yet to take pace in Ahmedabad. This reasons can be
the vegetarian culture of Gujarat as well as prohibitions by various religious sects such as
Swaminarayan. Although with the change in lifestyle and consumer preferences of citys youth,
sausage hot dog has potential of becoming an ideal meal for todays non-cumbersome and quick
bite lifestyle.

SECONDARY DATA

Hot dogs has a low market share in fast food sector of India compared to burgers and pizzas.
Indias fast food market is estimated at around $100 billion and is expected to rise to $240 billion
by 2020. The major players in fast food segment are Mc donalds, Pizza hut, Dominos, KFC etc.
While the major players specialized in hot dog industry are Nirulas, Simonja foods and Burgerman.
Consumer surveys on hot dogs are frequent in USA to measure annual consumption, consumer
preferences, consumption by region etc. In 2013, people of USA spent almost $5 billion on hot
dogs. Majority of surveys are conducted by National hot dog and sausage council (NHDSC). The
major source of data is hot dog vendors from the streets.
A survey was conducted by National hot dog and sausage council to find out the most favorite
sausage flavor among Americans. Corn based sausages topped the list while New York based hot
dogs are favorite category of hot dogs among the respondents.
The survey was conducted by organization Harris poll on the behalf of NHDSC online. The
resuls were based on a total of 2130 responses that were received. The survey was not based on
probability sampling and hence no estimate of theoretical sampling error can be calculated.

RESEARCH DESIGN

Objective:
A) Primary Objective:
To determine the market potential of All American (or sausage based) hot dogs in
Ahmedabad region.

B) Secondary objectives:
a) To determine demographical factors affecting hot dog preferences of consumers
b) To determine the flavor preferences of hot dogs among the consumers.

Data collection method:

Online Questionnaire to be filled up by respondents

Sampling plan:
a) Population:
City of Ahmedabad
b) Sample size:
Around 200 respondents
c) Demographic segments:
Age, occupation, gender
d) Sampling method:
Convenience sampling
e) Analysing techniques:
Graphical method and chi square analysis

RESPONDENTS PROFILE

Gender
male
female
Total

Total respondents
111
89
200

Total respondents
250
200
Total respondents

150
100
50
0
male

Occupation
Students
service
Self employed/business
Total

female

Total

Total respondents
145
40
15
200

Total respondents
250
200
150
100
50
0

Total respondents

Age
15-20
20-25
25-30
30-35
35-above
Total

Total respondents
3
102
75
15
5
200

Total respondents
250
200
150
100
50
0

Total respondents

FINDINGS
A) People who like hot dogs and people who dont like hot dogs

People who like hot dogs

People who dont like hot dogs
Total

113
87
200

250
200
150
100
50
0

Gender
Male
Female
Total

People who like hot People who dont like Total

dogs
hot dogs
73
38
111
40
49
89
113
87
200

250
200
150
100
50
0

Male
Female
Total

Occupation
Student
Service
Self
employed/business
Total

People who like hot People who

dogs
like hot dogs
85
60
21
19
7
8
113

dont Total

87

145
40
15
200

250
200
150
100
50
0

People who like hot

dogs
People who dont like
hot dogs
Total

Age
15-20
20-25

People who like hot People who dont like Total

dogs
hot dogs
3
0
3
62
40
102

25-30
30-35
35-above
Total

39
7
2
113

36
8
3
87

250
200
150

People who like hot

dogs

100

People who dont like

hot dogs

50

Total

B) People who are aware of sausage hot dogs

People who are aware of sausage based hot
dogs
People who are not aware of sausage based
hot dogs
Total

107
93
200

250
200
150
100
50
0
People who are aware of sausage based hot dogs

75
15
5
200

Gender
Male
Female
Total

Aware of sausage hot

dogs
61
46
107

Not aware of sausage

hot dogs
50
43
93

Total
111
89
200

250
200
150

Male
Female

100

Total

50
0
Aware of sausage hot dogs

Occupation

Student
Service
Self
employed/business
Total

Total

People who are aware

of sausage based hot
dogs
74
25
8

People who are not

aware of sausage
based hot dogs
71
15
7

Total

107

93

200

145
40
15

250
200
150
100
50
0

People who are aware

of sausage based hot
dogs
People who are not
aware of sausage
based hot dogs
Total

Age

15-20
20-25
25-30
30-35
35-above
Total

People who are aware People who are not

of sausage hot dogs
aware of sausage hot
dogs
1
2
58
44
39
36
7
8
2
3
107
93

Total

3
102
75
15
5
200

250
200

Age
People who are aware
of sausage hot dogs

150

People who are not

aware of sausage hot
dogs

100

Total
50
0
1

C) People who tried sausage based hot dogs at least once in their life time- 48/200
D) People who tried sausage based hot dogs and are preferring it over traditional Indian hot
dog- 31/48
E) People who havent tried sausage hot dog but would like to try it in future- 81/152

CHI SQUARE ANALYSIS

1) Occupation vs preference:
H0: The consumer preference of hot dogs is attributed to occupation of respondents at
confidence level 80%
Ha: The consumer preference of hot dogs is not attributed to occupation of respondents at
confidence level 80%

Occupation
Student
Service
Self
employed/business
Total

Level of significance
DF
X2
p-value

People who like hot People who

dogs
like hot dogs
85
60
21
19
7
8
113

87

dont Total
145
40
15
200

0.05
2
1.002
0.065

As the p-value is higher than level of significance, we fail to reject the null hypothesis. Hence it can
be said that the consumer preference is attributable to occupation of respondent.

2) Age vs preference:
H0: The consumer preference of hot dogs is attributed to age of respondent at confidence
level of 80%
Ha: The consumer preference of hot dog is not attributed to age of espondent at confidence
level of 80%
Age
15-20
20-25
25-30
30-35
35-above
Total

Level of significance
DF
X2
p-value

People who like hot People who dont like

dogs
hot dogs
3
0
62
40
39
36
7
8
2
3
113
87

Total
3
102
75
15
5
200

0.05
4
4.371
0.07

As the p-value is higher than level of significance, we fail to reject the null hypothesis. Hence the
consumer preferences are attributable to the age of respondent.

FACTS AND FIGURES

1) As found out in chi square analysis, the age and occupation of respondent have significant
role in their preferences of hot dogs
2) Out of 200 respondents 105 have heard about sausage based hot dogs.
3) 87 out of 200 respondents dont like hot dogs. Following are the two primary reasons
a) Dont like the taste
b) Religion
4) Out of 48 people who have tried sausage hot dogs at least once, 31 preferred it over
traditional Indian style hot dog
5) While out of the remaining 17, 11 said that it will depend on the type of sausage they will
get
6) Out of 113 people who likes hot dog, 41 prefer it to be non veg, while 49 prefer it to be veg,
while the remaining like them both.
7) Out of 48 people who tried sausage hot, dogs, following are their sausage preferences:
Type of sausage
Corn (veg)
Soy (veg)
Chicken
Mutton
Pork

No of people who preferred it

21
19
5
2
1

CONCLUSION

The aim of the project was to estimate the market potential of sausage based hot dogs in
Ahmedabad region. The findings states that the preferences of consumers is highly impacted by the
demographic factors such as their occupation and their age. According to survey, male respondents
are more aware and have likely tried sausage based hot dog in their life as compared to women.
Awareness of sausage based hot dog can be found more in the age of 21-30. In terms of sausage
preferences, vegetarian flavors of soy and corn are more preferred among respondents. As per the
statistics, out of those people who have tried sausage hot dogs, more than half have preferred it over
traditional Indian style hot dogs.
From the findings it can be deducted that, there is very less awareness of sausage based hot dogs
among people of Ahmedabad. However, looking at the responses provided by students or people of
the age between 21to 30, it can be said that, Ahmedabad has a good potential of sausage based hot
dogs, if the retailers are successful in wooing these young audiences by successful marketing
campaign and providing the popular choices of sausage flavors. The sausage hot dog based
industry in Ahmedabad is still a new concept, as only few vendors are active in this field. This can
be an advantage for a restaurant startup that is looking forward to try its luck in this sector.

APPENDIX-1 (QUESTIONNAIRE)
A) Name
AnswerB) Gender:
Male
Female
C) Occupation:
Answer1) Do you like hot dogs?
A) Yes
B) No
2) If no, please specify the reason
AnswerIf yes, please answer the questions 3-4
3) Have you heard about sausage hotdog?
A) Yes
B) No
4) Have you ever tried sausage hotdog?
A) Yes
B) No
5) If no then would you like to try in future?
A) Yes
B) No
If yes then please answer the following questions
6)
A)
B)
C)

What kind of sausage would you like?

Veg
Non veg
Doesnt matter, I like them both

7) Do you prefer it over traditional Indian hotdog?

A) Yes
B) No

8) What kind of sausage do you prefer?

A) Chicken

B)
C)
D)
E)
F)

Beef
Pork
Mutton
Corn (veg)
Soy (veg)

APPENDIX-2 (REFERENCES)

1) file:///D:/Users/maulik/Desktop/Hot%20dog%20%20Everything%20is%20in%20the
%20name%20-%20The%20Times%20of%20India.html
2) http://timesofindia.indiatimes.com/life-style/food/recipes/Indians-dig-into-sausages-desistyle/articleshow/4821964.cms
3) http://www.selective.com/fyi/archive/Product-Recall/Survey-Millions-of-Americans-confinetheir-hot-dog-consumption-to-summer-grilling-season-606.aspx
4) http://archive.financialexpress.com/news/story/173666